Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

GLOBAL MARKETS-Asia shares set to fall as Sino-U.S. strains hit confidence

Published 05/22/2020, 07:46 AM
Updated 05/22/2020, 07:50 AM
© Reuters.
XAU/USD
-
US500
-
DJI
-
JP225
-
SPY
-
BRBY
-
DX
-
GC
-
LCO
-
JP225
-
HK50
-
GLD
-
IXIC
-

* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Chris Prentice
WASHINGTON, May 21 (Reuters) - Asian shares were set for
another retreat on Friday as U.S.-China tensions curbed investor
risk appetite and caused global equity markets to stumble.
Hong Kong futures HSIc1 fell 1.59% and Nikkei futures
NKc1 were trading below the Nikkei 225 index's .N225
previous close, pointing to opening loss of 0.1%.
Australian S&P/ASX 200 futures YAPcm1 eased 0.13%.
Global equities pulled back after Beijing was set to impose
new national security legislation on Hong Kong. The move drew a
warning from President Donald Trump, who said the United States
would react "very strongly" against it. The back-and-forth between the world's two largest economies
stoked worries that the tensions could threaten "Phase 1" of a
U.S.-China trade deal reached early this year.
That prompted Wall Street shares to slip from the two-month
highs made in the previous session on hopes of a economic
recovery as governments began to lift their coronavirus
restrictions.
The majority of the 11 S&P sector indexes declined, leaving
the main benchmark S&P 500 .SPX down 0.78%. Dow Jones
Industrial Average .DJI finished down 0.41% and the Nasdaq
Composite .IXIC fell 0.97%.
The U.S. dollar, seen as a safe-haven, rose amid those
concerns. The dollar index =USD , which measures the
greenback's strength against six major currencies, was up 0.1%.
Spot gold XAU= , also typically seen as a risk-off option,
was little-changed after losses of 1% as investors booked
profits or opted for cash.
Brazil's real BRBY jumped after the central bank said it
was ready to increase support for the currency. The country is
expected to soon become the second-worst hit globally by the
pandemic as cases approach 300,000. Crude oil futures LCOc1 rose to their highest since March,
as recovering demand and production cuts offset investor jitters
seen in other markets. "Thus far, traders were right to call a trough in global
demand in April," AxiCorp Chief Global Markets Strategist
Stephen Innes said in a daily note. "Still, oil prices will
remain sensitive to any hint that the easing of global lockdowns
might result in the 2nd wave of COVID-19 infections and,
therefore, a more protracted impact on demand."


<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Tracking the spread of the novel coronavirus https://graphics.reuters.com/CHINA-HEALTH-MAP/0100B59S39E/index.html
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.